BMW and Daimler Stocks just hit 2-year record low and this may just be getting started.
While world most valuable electric car maker “Tesla” Stock price sits comfortably at 2-year record high price, ICE car manufacturing companies Stocks such as BMW and Daimler are suffering big time, and hitting record lows after lows.
Is the outbreak of the deadly coronavirus to be blamed for this?, I doubt it. Tesla Stock seems to be holding up fine in the middle of this.
Few days after BMW unveiled a concept version of its upcoming i4, an all-electric four-door Gran Coupe with an estimated EPA range of 270 miles and the ability to produce 530 horsepower, pushing it past its high-performance M3 combustion vehicle, the stock price hits 2-year record low. This can only mean investors are not taking it as positive as BMW had hoped for.
The i4 concept vehicle, which was unveiled online because the Geneva International Motor Show was cancelled due to the coronavirus, is slated to enter production in 2021. BMW has been talking about and teasing what would follow its i3 electric vehicle for awhile now. BMW released some specs on the upcoming i4 at the LA Auto Show back in November. This latest unveiling shows off more of what we can expect the i4 to look like, plus a bit more information on the interior and expected range.
Daimler on the other hand aims to cut emissions 20% this year with new electric models.
In the live-streamed event, Daimler promoted hybrid cars including a new CLA Shooting Brake, as well as the Mercedes-Benz EQC electric SUV and an electric van, the V-class, as part of its drive to reduce emissions by 20% this year.
“We are within striking distance of meeting the target,” Chief Executive Ola Kaellenius said. Mercedes-Benz plans to build 50,000 EQC vehicles this year.
Kaellenius declined to comment on the profitability of electric vehicles. “We don’t communicate individual margins. Electrification is a headwind,” he said.
In a report by Reuters, Daimler AG Chief Executive Ola Kaellenius said the carmaker has “no issues” securing electric vehicle battery cells, and is ramping up battery production to meet high demand for plug-in models.
“There is such a high demand for plug-ins, we are ramping up battery production as we speak,” Kaellenius told reporters on a conference call. Daimler plans to add electric vehicle capacity this year and next year.
Kaellenius said demand for plug-in hybrid models is driven in part by German companies guiding employees who get company cars as a benefit to choose electrified models. The German government also gives substantial tax breaks for hybrid and electric models compared to internal combustion vehicles. Because of those factors, “demand just went through the roof,” Kaellenius said.
Tesla Is Killing Competition
Need I say more?, Tesla is surely electrifying traditional car markers to hit the Electric road, and it looks like a bait so far.
While Tesla is building Giga factories after factories and working day and night to meet demands for it’s most prosperous Model, the Model 3, other car makers are playing catch up game.
According to some analysts and experts, Tesla battery technology and autopilot AI powered computer chip is atleast 6 years ahead of competitions.
Tesla investors seems to be pouring in much more money into Tesla Stock when compared to BMW and DAIMLER investors.
What’s your take on the scary development?.